water in transfer case

:runaround: I have a 1999 Wrangler sport, when i purchased it i checked all of the fluids and found that the fluid in the transfer case had water in it, so i flushed it and put new in, i checked the fluid 2 weeks later and it is even more watered down than before, please help:runaround:

?? Puzzling. Unless it was submerged, a fluid change should hold.

Done any wheeling?

Not to be insulting, but do you have both plugs in the Tcase? How are you detecting the water; can you see it after draining, having it tested, or looking at the consistency?

inspect your transfer case vent hose...where is it located

i haven't done any wheeling other than a few muddy fields, and yes both plugs are in the transfer case, i first noticed the fluid was pink rather than red like it should be, when i inspected all of the fluids after buying the vehicle, so i drained the old fluid out and replaced it, the next week i checked the fluid and it was pink and watered down again.

i checked the vent hose and it was fine and the vent hole is located on top of the t- case and runs up onto the backside of the motor in the engine comp.

automatic or standard??? if automatic very puzzling, if standard, are you losing trans fluid also??